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Figures published today by the Federation of Master Builders (FMB) in its 'State of Trade Survey' for the first quarter of 2002 indicate that, for the eleventh successive quarter, the workloads of small and medium-sized builders in the majority of UK regions are still on the increase, well ahead of industry expectations expressed in the last quarter of 2001. The report illustrates that, for FMB members at least, the building sector remains buoyant in 2002 and is expected to remain so for the foreseeable future.
Commenting on the ongoing growth in the building sector, FMB Director General, Ian Davis, said: "It is heartening to see that the building sector remains positive and FMB members are, on the whole, enjoying a period of sustained growth, despite some predictions to the contrary in the last quarter of 2001."
Increased workloads
Figures published in the survey found that 44 per cent of all respondents indicated that their workload was higher in the first quarter of 2002 than in the final three months of 2001, with Yorkshire, Wales and Scotland reporting the most significant increases with 52 per cent, 57 per cent and 59 per cent of builders respectively enjoying an upturn in business.
The repair, maintenance and improvement (RMI) of private housing was the strongest work sector for the first three months of 2002, with private housing new build the second strongest. However, there are indications of a slight decrease in industrial building work and most types of public sector work.
Future workloads
Looking forward to the next three months of 2002, almost half of the respondents in the various regions expected a further increase in work.
Yorkshire, the South West and the East Midlands are anticipating the highest increase and all regions are generally expecting growth, with the exception of firms in Scotland, who are expecting a very slight downturn. The types of work that firms expect the greatest increase in across the board are new build and RMI of private housing, commercial work and new build and refurbishment of non-residential buildings for public sector clients.
The survey also reveals that, overall, there is no sign of work dropping off in the short-term, with 43 per cent of all builders and specialist contractors surveyed reporting an increase in the number of enquiries relating to new business, which is slightly less than at the same point in 2001. There are also wide variations regionally in the rate of increase in the number of enquiries. The East Midlands, East Anglia, South West and Wales, for example, all reported significant increases, whereas the North, Yorkshire, London, West Midlands and Northern Ireland reported negative or lower than the national average rate of growth in the number of enquires received. Areas with highest levels of enquiries are new build and RMI of private housing.
Workforce figures
The increase in workload across the building sector was accompanied by a slight increase in the total workforce of FMB respondents. This comes against the last quarter survey of 2001, where respondents had anticipated a slight fall in the workforce. Again, there are significant regional variations - for example, in the East Midlands just over half report an increase in workforce whilst just over a quarter reported an increase in workload. Conversely, in the West Midlands 45 per cent of respondents reported an increase in workload, whilst only 13 per cent reported an increased workforce and 18 percent a decrease in workforce. Looking ahead to the second quarter, almost a third of the total respondents expect to expand their workforce, with only eight per cent expecting to shed jobs.
The labour market
When asked if they felt there was shortage of labour, the overall percentage of respondents answering yes was 60 per cent. This compares to 63 per cent in the last quarter of 2001 and to 71 per cent 12 months ago. Again there were regional variations. For example, whilst 73 per cent of Scottish respondents had experienced a shortage of labour, this figure was only 40 per cent in the Northern Counties region.
Firms in Scotland had the most difficulty in recruiting direct employees, but it was those in London, the South East and the West Midlands that were most concerned about the availability of trades to work as subcontractors. Carpenters and joiners were the trades most commonly reported as being difficult to find, followed by bricklayers, plasterers and plumbers.
Commenting on the issues raised in the survey, Ian Davis added:
"Although the overall outlook for FMB remains positive, there are still some ongoing concerns such as the shortage of skilled craftsmen, unfair competition from firms working 'cash in hand', false self-employment and the increase in bureaucracy from, for example, changes to Part L of the Building Regulations (England and Wales). These are all issues on which the FMB is actively campaigning on behalf of our members."
First posted: 24 April 2002. Last modified: 24 April 2002.
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